USDS (USDS) is 397.4× the size of Liquity USD (LUSD) by market capitalisation. Their daily returns move closely in opposite directions (correlation -0.75 across 43 shared trading days). LUSD has been the more volatile of the two, at 24% annualised against USDS's 1%.
LUSDUSDS
-0.75over 43 shared trading days
Measured on daily returns rather than on prices. Two assets that both simply trend upward score near 1.0 on raw prices whether or not they move together, so returns are what answer the question people mean by correlation.
| Metric | LUSD | USDS |
|---|---|---|
| Max drawdown (400d) | -4.2% | -0.4% |
| Risk-adjusted return (90d) | 0.05 | 0.01 |
Relative strength over 90 days: LUSD outperformed USDS by 1.0% — measured on the LUSD/USDS ratio, so it holds regardless of market direction.